Armenia plans to begin construction of a new high-voltage electricity transmission line connecting the country with Georgia in 2027, Minister of Territorial Administration and Infrastructure Davit Khudatyan announced during parliamentary discussions of the draft state budget.
The government plans to allocate 69.8 billion drams (approximately $190 million) to the project next year, financed through a loan agreement with Germany’s KfW development bank, Sputnik Armenia reported.
The project has faced years of delays, including difficulties selecting a substation site and procuring equipment to connect Armenia’s electricity network to Georgia’s 500-kilovolt grid. Specialized equipment is required because the two countries’ power systems operate asynchronously.
Total financing secured for the project stands at €323.75 million, against an estimated overall cost of €542.75 million.
Construction has already begun on sections extending from Ddmashen and Ayrum toward the Georgian border. India’s KEC International Limited secured a contract worth approximately €70 million for part of the work.
Once completed, the Armenia–Georgia line and the 400-kilovolt Iran–Armenia transmission line, also under construction, are expected to form an electricity corridor linking Iran, Armenia and Georgia.
